Target: ₹2,380
CMP: ₹1,690.55
A recent interaction with CarTrade management highlights the company’s increasing focus on building an AI-led, transaction-oriented platform, with initiatives spanning SuperDost — enabling buyers and sellers to connect directly, allowing relevant matchmaking by simply uploading a car’s photo or prompting a query, along with integration of CarWale and OLX through a unified C2B product aimed at improving cross-platform play. The company is also introducing WhatsApp-based vernacular interfaces to drive mass adoption, alongside adjacencies such as fintech, C2C transaction logistics/escrow, etc.
These efforts indicate a clear push towards improving monetisation through integrated AI capabilities, but visibility on the timeline and financial impact remains limited. We will wait for the actual impact on numbers before building it into our estimates. While there certainly is a huge opportunity in B2C/C2B/C2C segments, almost the entirety of the company’s revenue comes from B2B clients.
While we don’t change our revenue estimates across segments as factoring in AI initiatives in financials without tangible proof of execution will be premature, we have raised EBITDA estimates by 1-1.5 per cent over FY26-29E. We value CarTrade based on SoTP valuation to arrive at a lower March 2027 TP of ₹2,380. But the sharp correction turns risk-reward favourable with CMP near the bear-case scenario. We maintain Buy with March 27 TP implying a c.26x FY28E EBITDA multiple.